9 January 2013
                        Pactolus Hungarian Property plc                        
                        (the "Company" or the "Group")                         
                                Trading Update                                 

Ahead of the Company's EGM to be held at 11 a.m. today, the Company provides the following trading update:

Proceeds from previously announced property sales (including those announced in the Circular of 12 December 2012) have all been received.

The Group reached a position of zero net bank debt on 20 December 2012. The new two year EUR 1,500,000 loan facility with Investec Bank (UK) Limited, as announced in the Circular, has now been executed and has been drawn down in full. The Group also had an Other Creditors balance of approximately EUR 615,000 at the year end (of which EUR 463,000 is due to the Asset Manager).

The lettings market in Budapest has deteriorated further. As at the year end, the Group owned 28 properties of which 11 are currently unlet. The Asset Manager is working hard to let or sell the empty properties but there is no guarantee that market conditions will improve.

Throughout the year, the Group has been selling its properties at an average discount of 7 per cent to their 31 December 2011 valuations. In light of this and the continuing weak conditions in the market, the Group has decided to make a number of write downs to asset values totalling EUR 1,173,000. These include a write down of the value of all furniture and fittings, a provision for all future disposals of Group properties, related agents' commissions and legal costs, and a write down to the previous carrying value of all properties of 7 per cent.

The resultant unaudited net assets are estimated to be EUR 7,323,000 (31 December 2011; EUR 9,335,000) with the net asset value per share estimated to be approximately 38 pence per share at 31 December 2012 (31 December 2011; 48p).

For further information, please contact:

Asset Manager:

Midas Investment Management Limited

Tel: +44 (0) 161 228 1709
Nominated Adviser:
Nplus1 Singer Advisory LLP
Tel: +44 (0) 20 7496 3000